The EU institutions have reached an interim agreement on Interreg and the financing of cooperation projects for the period 2021-2027. and agreed to allocate EUR 8 billion to Interreg in the new programming period.

The EU Parliament and the Council are now expected to support the content of the agreement.

In the new period, more resources will be allocated to climate and social issues, and increased support for small projects and interpersonal actions is envisaged.

Interreg will support the following types of actions:

-Cross-border cooperation between neighboring regions to promote integrated and harmonious regional development between neighboring land and maritime border regions (Interreg A; 72.2% of total resources)
-Transnational cooperation in larger transnational territories or around sea basins (Interreg B; 18.2%)
-Interregional cooperation to strengthen the effectiveness of cohesion policy (Interreg C; 6.1%)
-Cooperation of the outermost regions to facilitate their integration and harmonious development in their region (Interreg D; 3.5%).
-The co-financing rate at each level of the Interreg program is set at a maximum of 80% of the funds that must be provided by the EU, and up to 85% for the outermost regions.

Other key measures have also been agreed:

-More resources are expected to be spent on climate action and social programs, including public health;
-Increased support for small and people-to-people projects: up to 20% under the Interreg program can be allocated to small project funds;
-Pre-financing levels (funds available to Member States after the approval of the Interreg program) are set at 1% for 2021 and 2022. and to 3% for the years 2023 to 2026, resulting in greater liquidity for the programs.

Source